The government has disbursed approximately sh15.5 trillion to various entities for the third quarter of the 2024/2025 financial year, covering expenditures for January, February, and March.
The announcement was made in a January 9 notice by Ramathan Ggoobi, Permanent Secretary of the Ministry of Finance.
This allocation is part of the sh72.1 trillion national budget for the current financial year, themed “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation, and Market Access.”
Budget Breakdown
- Recurrent Expenditure: Sh12.2 trillion, covering salaries, statutory wages, pensions, gratuities, and arrears for central and local governments.
- Development Budget: Sh1.13 trillion for central and local government projects, with sh219.5 billion allocated specifically to local governments.
- External Financing: Sh2.12 trillion, based on projected disbursements from development partners.
Third-Quarter Priorities
In his statement, Ggoobi identified key focus areas, including agro-industrialisation, tourism development, mineral-based industrial development (including oil and gas), science, technology and innovation, and the Parish Development Model (PDM).
He noted additional funding for security, social services (health and education), critical infrastructure such as Uganda Airlines and the Standard Gauge Railway, and operational costs like rent and utilities for ministries and agencies.
- Uganda Airlines: Sh29 billion allocated for operational costs, including supplier obligations for spare parts and cabin consumables.
- Standard Gauge Railway: Sh50 billion allocated, primarily for compensating project-affected persons.
Parish Development Model (PDM)
PDM remains a priority, with sh529 billion allocated this quarter to promote wealth creation among underserved communities. Since its 2022 launch, the program has received sh2.4 trillion, with sh1 trillion earmarked this financial year.
Pensions and Gratuities
A total of sh284.2 billion has been set aside for pensions and gratuities, including sh171.9 billion for pensions and sh112.2 billion for gratuities.
Debt Payment
Debt servicing accounts for sh6.6 trillion of the budget. As of December 2023, Uganda’s public debt stood at $24.6 billion (approximately sh91 trillion).
Sector Allocations
- Agriculture: Sh27 billion to spearhead agro-industrialisation.
- Ministry of Finance: Sh969 billion, including sh734.5 billion for recurrent expenses.
- Defence: Over sh1 trillion, including sh597.4 billion for salaries, pensions, and gratuities, and sh405.8 billion for development expenses.
- Energy: Sh262.6 billion, with sh220 billion expected from development partners.
- Parliamentary Commission: Sh209.5 billion for salaries and allowances for over 500 MPs.
- Electoral Commission: Sh107 billion allocated for operations as preparations for the 2026 elections begin.
Government’s Directive
Ggoobi emphasized the urgency of utilizing funds efficiently within the financial year, warning that unutilized funds would not be carried forward.
This strategic allocation underscores the government’s commitment to advancing economic development, addressing debt obligations, and supporting key sectors critical to national growth.
